Problem 2: Given the net cash flows for Project X (over 3-years) for Aberdeen Company Year CF 0-$300,000 1 $120,000 2 $128,000 3 $155,000 The company's capital structure is distributed equally between debt, preferred stock, common stock and new common stock. It has also the following information: 1- After tax cost of debt: 5.4%. Tax rate: 40% 2- Preferred stocks are selling at $80 per share and pay a dividend of $8 per share 3- Common stocks are selling at $50 per share, pay a year-end dividend of $3 per share and grow at a constant rate of 6%. When issuing new common stock, a 10% flotation cost would be incurred. The company is also considering another two projects "Y" & "Z" with the following information: Projects Y Z NPV $20,100.3 $37,320.2 MIRR 9.2% 14.5% IRR 7.77% 15.04% Payback period in years 4.1 1.64 Noted. This problem is related to questions 1 to 9 Questions: 1. NPV for Project "X"is: * A. $40,200.12 above B. $31,329.82 C. $32,780.33 D. $40.450.2 E. None of the 2. MIRR for Project "X" is: * A. 14.3% B. 18.2% above C. 13.70% D. 10.12% E. None of the 3. The Discounted Pay-Back Period for Project "X" is: * A. 42 years B. 3.56 years C. 2.73 years D. 1.55 years E. None of the above 4. The Pay-Back Period for Project "X" is: * A. 2.33 years B.2.78 years C. 3.8 years D. 3.41 years E. None of the above 5. Assuming that the three projects X, Y & Z are independent, which project (s) should the company accept? * A. Project X B. Project Y C. Only Projects X & Z D. All E. Reject all projects 6. Assuming that the three projects X Y & Z are mutual exclusive, and which project (s) should the company accept? A. Project X B. Project Y C. Project Z D. All E. Reject all projects 7. Assuming that the three projects X, Y & Z are independent based on MIRR criteria which project(s) should the company accept? A. Project X B. Project Z C. Projects X, Y & Z D. Only Projects X & Z E Reject all projects 8. Assuming that the three projects X, Y&Z are mutual exclusive, based on MIRR criteria which project(s) should the company accept?* A. Project X B. Project Y C. Project D. All projects E. Rejects all projects 9. If IRR for "X" is 15.59%, and the three projects X, Y & Z are independent, based on IRR criteria which project(s) should the company accept? * A. Projects X&Z B. Projects Z &Y C. All Projects D. Projects X&Y E. Reject all projects 10. Carlyle Inc. is considering two mutually exclusive projects. Both require an initial investment of $15,000 att = 0. Project S has an expected life of 2 years with after-tax cash inflows of $7,000 and $12,000 at the end of Years 1 and 2, respectively. Project L has an expected life of 4 years with after-tax cash inflows of $5,200 at the end of each of the next 4 years. Each project has a WACC of 9.00%, and neither can be repeated. The controller prefers Projects, but the CFO prefers Project L. How much value will the firm gain or lose if Project L is selected over Project S, i.e., what is the value of NPVL - NPVS? A. $262.74 B. $291.93 C. $324.37 D. $356.80 E. $392.48